Schedule of estimates of Service Charges contained in the Section 125 Offer Notice Please make sure you read and fully understand the following information Appendix 2, Part A – Service Charges What sort of service charges do I have to pay for? This is set out in the table in Appendix 2, Part A. All leaseholders have to pay a management fee and buildings insurance and insurance tax but you could also be charged for things like concierge, door entry maintenance, lift maintenance etc. depending on what services are provided to your block. The service charge is variable and may rise or fall in the future. We may also decide to charge for services not included in this list at a future date. I live on the ground floor and do not have access to certain services, why do I have to pay towards things like lift maintenance, lighting and door entry systems? Your property forms part of a larger block and under the lease terms you must pay a share of the cost of all services provided there, whether you benefit from them or not. Does the buildings insurance charge cover all repairs and maintenance? No. Buildings insurance covers you for certain things like damage from fire, flood or vandalism but does not cover you for normal day to day repairs and maintenance. How long do I have to pay my service charges? You have to pay your service charges within 14 days from when it is issued, usually around the end of March. Payment is due in full in advance of the financial year which runs from April to March. You will not have the option of spreading the cost unless you demonstrate that you are in financial difficulty. If you genuinely cannot afford to pay you may be able to spread the cost over a number of months. It is important that you really think about the costs prior to buying your leasehold property. The lease is legally binding once you complete your purchase. Appendix 2, part B - Major Works What sort of major works do I have to pay for? There is a list of potential major works costs shown in Appendix 2, Part B. The works are estimated and may or may not, be carried out within the first 5 years if you buy your home. We still own the bricks and mortar of your home, but you have to pay towards the upkeep. The costs that are shown are not based on a specific survey of your home. They are based on the information we hold (to the best of our knowledge) of the type of property you live in, and the types of work we think might be needed in the future. With these costs, unlike the forecasted Annual Service Charge, we cannot charge you more than what we have quoted within the first 5 years of you buying your home, but can add an amount for inflation. How do I pay for major works costs?
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